Supply Managers Believe They Can Add the Most Value to the Outsourcing

question 21

Multiple Choice

Supply managers believe they can add the most value to the outsourcing decision by:

• A)providing a comprehensive,competitive process.
• B)advising the outsourcing team on relevant contractual terms and conditions.
• C)reviewing the analysis conducted by the outsourcing team.
• D)being available if the internal users want their assistance.
• E)managing the contract once the decision has been implemented.

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Definitions:

Overhead

General, ongoing costs to operate a business that aren’t directly tied to producing a product or service, such as rent, utilities, and insurance.

Activity-Based Costing

A financial method which identifies organizational activities and assigns each activity's costs to products and services based on the actual amount they consume.

Activity Cost Pools

Collections of overhead costs assigned to specific activities, used in activity-based costing to allocate costs more accurately.

Activity Rates

Rates used in activity-based costing to allocate costs to products or services based on the activities they require.